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SPICING UP AGRICULTURE: ₹9.50-CR CHILLI PROCESSING PLANT TO BOOST CROP DIVERSIFICATION

Jai Singh by Jai Singh
June 8, 2025
in Chandigarh, Punjab, Top Stories
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5 tons/hour capacity plant to start operation in Abohar by September 2025: Gurmeet Singh Khudian

•  PAGREXCO targets global export as demand for Punjab’s Red Chilli Paste surges, says Food Processing Minister

•  Ferozepur tops chilli production with 19MT/hectare yield

Chandigarh, June 8:

In a bid to promote crop diversification and boost farmers’ income, Punjab Government is set to commission a Rs. 9.50 crore chilli processing plant in Abohar by September 2025, announced S. Gurmeet Singh Khudian, Minister of Agriculture and Food Processing, Punjab.

He said that the chilli processing plant, being established by Punjab Agri Export Corporation Ltd. (PAGREXCO) at one acre of land, will have an installed capacity of five tons per hour, besides provide a significant boost to the state’s agricultural sector.

S. Gurmeet Singh Khudian highlighted that the area under chilli cultivation has been increasing annually, with farmers being encouraged to grow high-yielding varieties suitable for processing. As of 2024, Punjab’s chilli cultivation spanned 10,614 hectares, the highest recorded area in recent years, yielding 21,416 metric tons. Ferozepur district leads in chilli production, followed by Patiala, Malerkotla, Sangrur, Jalandhar, Tarn Taran, Amritsar, SBS Nagar, and Hoshiarpur. Ferozepur’s average yield of approximately 19 metric tons (MT) per hectare showcases the region’s efficient farming practices.

The Food Processing Minister stated that PAGREXCO directly procures chillies from farmers and aggregators, leveraging a well-established marketing network. The corporation is a major exporter of concentrate pepper mash cayenne (red chilli paste) from Punjab. The high quality and pungency of Punjab’s chillies have led to increasing demand year after year, encouraging farmers to produce red chillies for processing.

Chilli cultivation has emerged as a vital component of Punjab’s agricultural diversification, providing farmers with a lucrative alternative to traditional crops like wheat and paddy. The state’s favorable agro-climatic conditions have strategically positioned Punjab as a key player in chilli production and processing, capitalizing on new opportunities in the agricultural sector, he added.

Punjab is now exporting red chilli paste to international markets, including the Middle East and African Caribbean countries, said S. Khudian while adding that PAGREXCO aims to become a leading global exporter of red chilli paste. The corporation’s marketing team is actively showcasing the high pungency of Punjab chillies at exhibitions and fairs to meet growing demand and promote the product worldwide.

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